SGH Reports $5.41 Billion Revenue, $472.6 Million Net Profit in H1 2026

Financial Performance Overview

SGH Ltd, a diversified industrial conglomerate with leading businesses in industrial services, energy, and media, has released its half-year financial results for the period ending 31 December 2025. The company reported revenue of $5.41 billion, a slight decrease from the previous corresponding period, while net profit after tax rose modestly to $472.6 million. This steady performance reflects resilience amid ongoing restructuring and market challenges.

Underlying earnings per share stood at $1.27, up slightly from $1.24 in the prior year, underscoring consistent profitability. The board declared a fully franked interim dividend of 32 cents per share, signalling confidence in cash flow and capital management.

Segment Highlights and Strategic Moves

SGH’s core segments; WesTrac, Boral, Coates, Energy, and Media investments; continue to drive the group’s diversified revenue streams. WesTrac, the authorised Caterpillar dealer in Western Australia and New South Wales/ACT, and Boral, Australia’s largest integrated construction materials business, remain key contributors.

The prior period acquisition of Boral is now fully integrated, with the company absorbing restructuring and transformation costs as part of its ongoing efficiency initiatives. These costs, alongside impairments related to the media segment, notably Seven West Media, have influenced reported earnings but are viewed as investments in future growth.

In a significant corporate development, SGH completed the merger of Seven West Media into Southern Cross Media Group in early January 2026. This transaction converted SGH’s 40.2% stake in Seven West Media into a 20.1% interest in Southern Cross Media, positioning SGH as a substantial shareholder in one of Australia’s largest media groups. This move diversifies SGH’s media exposure and aligns with broader industry consolidation trends.

Balance Sheet and Liquidity

SGH’s balance sheet remains robust, with net tangible asset backing per share increasing to $7.14 from $6.29 at June 2025. The company maintains strong liquidity, with undrawn borrowing facilities of approximately $1.89 billion, providing flexibility for capital expenditure and strategic investments.

Interest-bearing loans and borrowings are well-managed, with recent refinancing extending maturities on key syndicated loan tranches to 2030 and beyond. The company’s disciplined approach to debt and capital structure supports its diversified operations and growth ambitions.

Governance and Leadership Transitions

SGH announced upcoming board changes, with Non-Executive Director and Audit & Risk Committee Chair Annabelle Chaplain AM retiring in February 2026. Mark Johnson will succeed her as ARC Chair. Additionally, John Gillam joined the board in February 2026 and is slated to become Chairman in June 2026, succeeding Terry Davis. These leadership transitions reflect SGH’s commitment to strong governance and strategic continuity.

Looking Ahead

SGH’s half-year results demonstrate steady operational performance amid a complex market environment. The completion of the media merger and ongoing integration of Boral set the stage for future growth opportunities. Investors will be watching how SGH leverages its diversified portfolio and capital strength to navigate evolving industry dynamics and deliver shareholder value.